Oversupply of pork and low prices behind recent shut down of hog operations

Jun 19, 2023

It’s always unfortunate to hear of a hog barn closing anywhere in Canada.

That from Saskatchewan Pork Development Board general manager Mark Ferguson on Olymel’s decision to shutter five operations.

Reacting to Olymel’s recent closures of sow units in Quebec, Alberta, and Saskatchewan, Ferguson said the actions are the result of extremely tight margins in the hog industry both today and what’s been going on over the past few years.

“From what I understand these are temporary depopulations that are just meant to be in effect until the industry returns to more profitable times,” Ferguson said. “So, ultimately, we think all these units will be eventually repopulated.”

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Video: Season 7, Episode 1: Managing Risk and Seeing Opportunities in U.S. Pork Production

Today’s episode features three guests discussing the similarities and differences between pork production in the United States and Brazil, along with strategies for managing risk in today’s industry while recognizing and acting on opportunities. First, Dr. Anne Caroline de Lara, executive manager of live pig production at Seara Alimentos, a JBS company in Brazil, is joined by Dr. Matthew Turner, head of operations for JBS Live Pork. Together, they discuss how labor, climate and ventilation challenges vary between Brazil and the United States, while underscoring their shared commitment to raising healthy pigs. They also point to lessons producers in both countries can take from one another’s systems and on-farm experiences. Then, Brady Reicks, risk manager at Reicks View Farms, shares his perspective on risk management, drawing from his background in markets and his transition into farming. He discusses how protecting margins varies by operation and offers practical approaches producers can use to make marketing and business decisions with greater confidence rather than hesitation.

Both conversations were recorded at recent industry events focused on swine livability, including the International Conference on Pig Livability and Iowa Swine Day.